Brad Staats

NE Indiana Lean Network

Dec 8, 2016

NE Indiana Lean Network

Lean Culture

Traditional Way Of Thinking

Cost + Profit = Selling Price

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Lean Culture

Lean Way Of Thinking

Price – Cost = Profit

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Lean Culture

The Only Way To Increase Profit Is To

Decrease Cost

The Only Way To Decrease Cost Is To

Eliminate Waste

The Only Way To Eliminate Waste Is

Through Continuous Process Improvement

Which Will Add Value for the Customer

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Lean Culture

The Seven Wastes

– Over-production

– Transport

– Defects

– Over-processing

– Motion

– Waiting

– Inventory

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Lean Culture

Lean Enterprise Of The Future

– A group of individuals, processes, and functions

that are separate in nature but are

synchronized throughout the organization while

working to the demands of the customer.

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Lean Culture

The Lean Enterprise Has A Culture Where

All Employees Are Continuously Looking For

Ways To Improve Processes

Teams Drive The Lean Culture To

Specifically Ensure That The Processes Add

Value While Satisfying The Customer

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Empowerment

“…. the major inhibitor to get a lean environment is

the inability to trust the workforce and really give

up a certain level of control in order to give

people the power to implement their own ideas

and be respected as experts in their area….”

You cannot assign or give empowerment to people

People have to take it!

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Organizational Culture

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Organizational Culture

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Barriers to Creating a Lean Culture

The Way it Has Always Been

vs. a Paradigm Shift

Doers vs. Watchers vs. Grumblers

Corporate Strategies

Team vs. Individual

Fear of the Unknown

Trust and Communication

Old metrics contradict Lean thinking

Managers fear changing financial controls

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Change

Resistance to change is the norm, not the exception

People must be informed, empowered, willing and able

in order for changes to be made effectively

Personal and organizational values affect how people

react to change

People go through the change process in stages and

go through these stages as individuals

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OK - How do you do it?

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Lean Tools

– 5-S / Visual Management

– Mistake Proofing (Poke

Yoke)

– Quick Changeover

(SMED)

– Standard Work

– One Piece Flow

– Kanban

– Total Productive

Maintenance

– Kaizen

14

– 3 M’s

– 5 Why

– Value Stream Mapping

– Cellular Processing

– Total Quality

Maintenance

– Just In Time

– Pull Production

– Hoshi Kanri

– A3 Report

– Quality Circles

– 4P model

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Making the Change

Understand What It Means

– Top management

– Middle Management

– Conferences

– Seminars

– In-house education

– Certification

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Making the Change

Assess Lean Readiness

– Corporate culture

– Operating strategy

– Management knowledge

– Organizational awareness

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Making the Change

Develop Metrics

– Simple and straightforward

– Close to the action

– Measure the process

– Daily accountability

– Publish the results

– Take small steps first

Focus on the Customer

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Lean Performance Measurement

Visual Controls

– Focus on process and actual performance

– Visual controls enforce discipline

– Do not track everything - only that which shows

the information you need to quickly see the

status of your process

– Hour by hour tracking chart

– Job by job tracking chart

– Production tracking chart

– Daily task accountability board

– Shop floor scoreboards

– Look/See Inventory Storage

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Lean Performance Measurement

Promote and Measure Lean Learning

Cross training / Training matrix

Quality circles involvement

Project involvement / completion

Implemented improvements

Teach problem solving

Teach team building

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Git-r-Dun

Assess Results

Spend Time Where the Action Is

Get Feedback from Others

Push to the Next Level of Improvement

Follow Through with Expectations

Let People Ask Questions

Give Honest Assessments

!!! Sustain !!!

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Review and Adjust

Celebrate the Success

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Potential Benefits

Examples

– 50% improvement in gateway machine output

– 70% improvement in finished quality

– 25% reduction in production lead time

– 21% growth in annual revenue

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BE LEAN don’t just do lean